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Practice Test 2
You scored 95 out of 100
Question 1
Your answer is CORRECT.
Suppose you buy a piece of office equipment for $15,000.00. After 3 years you sell it
for a scrap value of $4,000.00. The equipment is depreciated linearly over 3 years. The
rate of depreciation for the piece of equipment is
a)
$11,000.00 per year
b)
$2,200.00 per year
c)
$5,000.00 per year
d)
$2,750.00 per year
e)
$3,666.67 per year
f)
None of the above.

Question 2
Your answer is CORRECT.
A manufacturer has a monthly fixed cost of $100,000.00 and a production cost of $8 for
each unit produced. The product sells for $21 per unit. The revenue function for this
situation is

c)
d)
e)
f)
None of the above.
Question 3
Your answer is CORRECT.
A manufacturer has a monthly fixed cost of $30,000.00 and a production cost of $11 for
each unit produced. The product sells for $17 per unit. The profit function for this
situation is